The Minnesota Public Utilities Commission declined to approve Minnesota Power’s application to construct a new natural gas plant, instead ordering the utility to investigate alternative approaches to satisfying future energy requirements. The decision was welcomed by several clean energy advocacy organizations, including Clean Grid Alliance, Fresh Energy, Minnesota Center for Environmental Advocacy, and Sierra Club.
Minnesota Power had submitted its gas plant proposal as part of its long-range energy planning documents, with the initial submission made in March 2025 and subsequent revisions filed in January 2026. The utility argued that the facility would be necessary to meet demand projections. However, the clean energy organizations contended that the proposal lacked economic justification, particularly given elevated construction and operational expenses for natural gas facilities. These groups presented an alternative energy plan developed with input from Energy Futures Group and Synapse Energy Economics that they characterized as cleaner, cost-competitive, and equally capable of meeting the utility’s reliability needs.
The commission’s order requires Minnesota Power to pursue additional clean energy development beyond its original proposal and to investigate alternatives to the gas plant. The decision also mandates improved transparency regarding large energy consumers entering the utility’s service territory, such as data centers, alongside requirements for enhanced energy efficiency measures and demand response strategies in future planning.
Advocates highlighted that constructing the gas facility would pose compliance challenges under Minnesota’s requirement that utilities provide entirely carbon-free electricity by 2040. The proposed plant would not come online until 2035, leaving only five years before the deadline, which would necessitate expensive carbon offset purchases or carbon capture technologies. The organizations noted that rapidly advancing battery technology and other clean alternatives could become economically viable before the plant would be needed in nine years, making premature approval inadvisable.
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